The supply of houses for sale has slumped its lowest level for 11 years, exacerbating fears that housing affordability is set to continue declining.
The number of properties available to buy per estate agent branch dropped to 38 in August, according to figures released today by the National Association of Estate Agents (NAEA) – a 31 per cent drop on July's 55.
However August also experienced a dip in house hunters, with an average of 408 house-hunters registered per member branch, compared to 462 in July.
Mark Hayward, managing director of the NAEA said: “We’ve been banging the drum about the dwindling supply of housing for a while and this month’s report reiterates what we’ve been saying – there simply aren’t enough houses to match demand and we’re reaching crisis point.
"There are now eleven house hunters fighting after every available house which isn’t sustainable.”
“First time buyers are finding themselves being squeezed out of the competition, which of course means it’s taking young buyers longer to get their foot on the first step of the ladder, which will in turn increase pressure on the rental market.”